HomeMy WebLinkAbout1993-07-13; City Council; 12309; RENEWAL OF EXCESS WORKERS' COMPENSATION INSURANCE4 RENEWAL OF EXCESS WORKERS’
COMPENSATION INSURANCE
DED ACTION:
ITEM EXPLANATION
The current Excess Workers’ Compensation Insurance Policy expired on June 30, 1993.
Coverage has been continued pending Council action on the current proposals. This policy
provides for loss coverage which exceeds the City’s self-insured retention level.
Quotations for coverage were received from the following insurance companies: General
Reinsurance, Employers Reinsurance and National Union. General Reinsurance and
Employers Reinsurance are rated A+XV and A+XIII respectively, and National Union is
rated A++XV in Best’s 1993 Key Rating Guide. All three companies exceed the City’s
minimum rating requirements.
The basic differences between the quotations are set forth below.
Limit Rate/$100
Quote Provider on Benefits of Payroll Deposit Premium
$10,o0O,o0O $0.191 $45,588
Employers RE Statutory $0.2341 $55,868
National Union Statutory $0.1836 $43,822
The only differences between these programs center around the cap on workers compensation
benefits and the premium. Although the limit on workers’ compensation benefits under
Employers Reinsurance is statutory (unlimited), the premium is significantly higher than that
of the other two insurance companies. Benefits under General Reinsurance are capped at
$lO,OOO,OOO for a much lower premium than that of Employers Reinsurance. However, the
same statutory limit, or no limit, as provided by Employers Reinsurance can be obtained
through National Union with a premium below the quotes from both of the other companies. As a result, staff recommends that the City renew its coverage with National Union as set
forth in Quotation 111.
FISCAL IMPACT
The recommended renewal quotation is $43,822. This represents a $4,464 increase over last
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PAGE TWO OF AB #/-?. 309
EXHIBITS
1. Resolution No. 93-203
2. Summary of Excess Workers' Compensation Insurance Proposals
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RESOLUTION NO. 9 3 - 7.0 3
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CARISBAD, CALIFORNIA,
AUTHORIZING RENEWAL OF THE CITY’S
EXCESS WORKERS’ COMPENSATION
INSURANCE
WHEREAS, the City has established a self-insurance program for workers’
compensation; and
WHEREAS, the City’s Insurance Broker has received quotations for Excess
Workers’ Compensation Insurance coverage; and
WHEREAS, upon evaluation of these quotations for excess insurance, the
City desires to renew its insurance.
NOW, THEREFORE, BE IT RESOLVED by the City Council of Carlsbad
California as follows:
1.
2.
That the above recitations are true and correct.
That the renewal of the City’s Excess Workers’ Compensation
Insurance coverage with National Union is hereby approved and the Finance Director is
authorized to issue a warrant for the deposit premium of said renewal in the amount of
$43,822.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City
Council of the City of Carlsbad on the 13th day of JULY
vote, to wit:
1993, by the following
AYES: Council Members Lewis, Stanton, Kulchin, Nygaard, Finn
NOES: None
BBSENT: None
ATEST:
K%M8~fW-
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w EXHIBIT 2 0
1
CITYOF CARLSBAD
EKG3EsS W0RECJ3RS7 COWENSATCON QUOTATIONS
JULY 1,1993 to JULY 1,1994
Current Quote I hQ?za Quote 111
COMPANY: General General Employers National
Re’ insurance Reinsurance Reinsurance Union
RATING: A+:XV A+:XV A+:XIII A++:XV Admitted Admitted Admitted Admitted-
LIMITS: $1O,OOO,OOOWC $1O,OOO,OOO*WC Statutory WC Statutory $l,000,000EL $1,000,000EL $1,000,000EL $1,000,00
S.I.R.: $300,000 $300,000 $400,000 $300,0(
ESTIMATED PAYROLL: $22,750,000 $23,864,937 $23,864,537 $23,864,93
RATE: .173 *.191 2341 .1836
DEPOSIT
PREMIUM: $39,358 $45,588 $55,868 $43,8:
CAL-SURANCE ASSOCIATE